No-DSCR Rental Loans 1–4 Unit & Short-Term Rental Financing
Financing for 1–4 unit residential investment properties when you need rental financing without a traditional DSCR requirement. Short-term rentals and Airbnb properties are allowed.
What Are No-DSCR Rental Loans?
No-DSCR rental loans are designed for real estate investors who want financing for a residential rental property without having the loan subject to a traditional debt-service-coverage-ratio requirement. The program is available for qualifying 1–4 unit residential investment properties, including properties operated as short-term rentals such as Airbnb.
No DSCR Requirement
The program does not require a minimum DSCR calculation to qualify.
Up to 75% LTV
Qualifying borrowers can finance up to 75% of the property's value.
Short-Term Rentals Allowed
Qualifying Airbnb and other short-term rental properties can be considered.
650+ Mid FICO
A minimum 650 mid credit score is required for the program.
No-DSCR Rental Loan Requirements
The program is intentionally straightforward. If your property and borrower profile meet the core requirements below, you may qualify without meeting a traditional DSCR threshold.
Built for Rental Investors Who Don't Fit Traditional DSCR
Some rental properties and investment strategies don't fit neatly into conventional DSCR underwriting. This program gives investors another financing option while keeping the requirements clear and straightforward.
It can be particularly useful for investors purchasing or refinancing 1–4 unit properties, including qualifying short-term rental and Airbnb properties, who meet the credit and LTV requirements but do not want the loan structured around a DSCR calculation.
No-DSCR Rental Loan Requirements
This program is designed for investors purchasing or refinancing 1–4 unit residential rental properties without a traditional DSCR requirement.
1–4 Unit Residential
Available for qualifying single-family homes, duplexes, triplexes and fourplexes used as investment properties.
650+ Mid Credit
A minimum 650 mid credit score is required for this rental loan program.
Up to 75% LTV
Finance qualifying rental properties with up to 75% loan-to-value, subject to property and borrower approval.
No DSCR Requirement
The program does not require the property to meet a traditional debt-service coverage ratio.
Short-Term Rentals Allowed
Qualifying properties may be operated as short-term rentals, including Airbnb-style rental strategies.
No Rural Properties
Properties must meet our geographic requirements. Rural properties are not eligible for this program.
A Rental Loan Without the Traditional DSCR Hurdle
This program gives real estate investors another financing option when a conventional DSCR loan isn't the right fit.
Short-Term Rental Investors
Investors using Airbnb and other short-term rental strategies can use this program for qualifying 1–4 unit residential properties.
Rental Property Buyers
Purchase a rental property with up to 75% LTV while avoiding the traditional DSCR requirement.
Investors Seeking Flexibility
A strong alternative when a property's rental income doesn't satisfy a standard DSCR calculation.
No-DSCR Rental Loans vs. Traditional DSCR Loans
Both programs are designed for rental property investors, but they solve different financing problems.
| Feature | No-DSCR Rental Loan | DSCR Rental Loan |
|---|---|---|
| Property Type | 1–4 Unit Residential | 1–4 Unit Residential |
| Minimum Credit | 650+ Mid | 660+ Mid |
| DSCR Requirement | None | 1.05 Minimum |
| Maximum LTV | 75% | Program dependent |
| Short-Term Rentals | Allowed | Program dependent |
When a No-DSCR Rental Loan Makes Sense
A property's rental income does not always tell the whole story. This program gives investors another way to finance a qualifying rental property when traditional DSCR underwriting creates a problem.
The Property Doesn't Meet DSCR
If projected rental income does not produce the required DSCR, this program provides an alternative.
You're Using Airbnb or Short-Term Rentals
Short-term rental strategies are permitted for qualifying properties, subject to applicable property and market requirements.
You Want Up to 75% LTV
Investors can finance qualifying properties at up to 75% LTV, allowing less capital to be tied up in the acquisition.
You Need an Alternative to Traditional Financing
When traditional rental financing doesn't fit the deal, a no-DSCR structure can provide another path to closing.
No-DSCR Rental Loan FAQs
What is a no-DSCR rental loan?
A no-DSCR rental loan is financing for qualifying 1–4 unit residential investment properties that does not require the property to meet a traditional debt-service coverage ratio.
What credit score is required?
A minimum 650 mid credit score is required.
How much can I borrow?
Qualifying properties may be financed up to 75% LTV, subject to the property's value, loan amount and overall approval.
Are Airbnb and short-term rentals allowed?
Yes. Qualifying 1–4 unit residential properties operated as short-term rentals, including Airbnb-style rentals, may be eligible.
Do I need a minimum DSCR?
No. This program does not require a traditional minimum DSCR.
Can I finance a single-family rental property?
Yes. Single-family investment properties are eligible, along with qualifying duplexes, triplexes and fourplexes.
Are rural properties eligible?
No. Rural properties are not eligible for this program.
Can I use this loan to purchase a rental property?
Yes. The program can be used for qualifying purchases of 1–4 unit residential investment properties.
Your Rental Deal Doesn't Need to Pass a DSCR Test
If you're buying or refinancing a qualifying 1–4 unit rental property, have 650+ mid credit and need up to 75% LTV without a DSCR requirement, let's look at the deal.
Get Your Rental Loan Started →